TaxGPT raises $4.6M to build “AI Tax Co-Pilot” for accounting & tax Firms

• TaxGPT, the world’s first AI tax co-pilot, just locked in $4.6M in funding!
• Big names like Y Combinator, Mangusta Capital, and Launch are backing this game-changer.
• Guess what they already have clients! 10,000+ CPAs, tax lawyers, and enrolled agents are already using it to serve 250,000 clients. 

Peek into the journey of TaxGPT’s founders!

First things first, co-founder Kashif Ali made it clear on social media that —TaxGPT isn’t just another accounting tool trying to cash in on the AI trend!

Now let us jump to the idea of how the idea was born in 2023!

Kashif and Isabella, a husband-and-wife duo, had been married for just two weeks.

Yet, something as simple as deciding whether to file their taxes jointly or separately took them a considerable amount of time to figure out.

They realized just how complicated and time-consuming accessing basic tax info could be.

That’s when the lightbulb moment struck. And that’s how TaxGPT was born—an AI-powered solution to make tax research fast, easy, and efficient.

Also, Kashif shared his challenging journey of entrepreneurship on LinkedIn.

He writes,

“8 years ago, I was flipping burgers in Tenderloin.

18 months later, I was working for Adobe.

4 years ago, I started a company with $60,000 in personal savings.

3 years later, I was a complete failure, with $40,000 in credit card debt, two failed companies, and burnout.”

More on TaxGPT Founders

• Kashif Ali – CEO & Founder (Over 15 years of experience in digital media, web development, and entrepreneurship)
• Isabella Maceda-Ali – CTO & Co-founder (Background in Software Engineering in companies like Oracle)
• Andrew Sedlacek – Founding CPA (Over 10 years of experience in tax)

Now, what problem is TaxGPT solving?

TaxGPT is on a mission to boost productivity by 10x for accountants & tax professionals. And how are they doing this?

• Instant Answers to complex tax questions
• Automated Tax Memos & Client Responses
• Generating tax memos efficiently

Most importantly why AI in Tax even matters?

• The number of accounting graduates is declining at an unprecedented rate.
• 75% of CPAs could retire in the next 10 years
• As per reports, Tax complexity costs Americans $260Bn a year

All of this has created a massive need for automation and making AI-driven efficiency crucial.

You could say, that TaxGPT is stepping into the market at a time when AI is desperately needed.

How much does it cost?

From the internet, we gathered that the starting subscription costs $1,000 per year per seat.

TaxGPT offers extensive tax research resources and advanced tools, making it a cost-effective solution for enhancing accuracy and efficiency.

Also read: Thomson Reuters acquires Materia, an AI assistant for tax, audit, & accounting

What are TaxGPT users saying?

Well, we could not get more details but a glimpse into Reddit and we did get mixed replies! But again that was a year ago!

Also read: AI-agent for “Accountants” backed By Khosla Ventures raises $34Mn 

Investors

On February 6, 2025, TaxGPT announced seed funding from top-tier investors, including,

• Y Combinator,
• Rebel Fund,
• Mangusta Capital,
• Launch
• iSeed Ventures,
• Converge Fund,
• TRAC AI/VC Unicorn Fund,
• Goodwater Genesis,
• CRV Disrupt Fund,
• Principal Venture Partners

Other prominent investors include,

• Kulveer Taggar,
• Jason Calacanis,
• Co-founders of Truebill

How do they plan to use the funding?

They intend to utilize the fresh capital to,

• Accelerate product development,
• Expand sales and marketing efforts,
• Onboard top engineering talent